The Communist Party has urged some 40,700 government officials, including 229 at provincial and ministerial-level, to quit their part-time jobs in private companies.
The action by the party’s Central Organization Department follows a ban on incumbent officials’ employment in private companies issued in October last year.
Retired officials are now banned for three years from working in positions related to their prior jobs.
The organization told the People’s Daily that it has been closely monitoring officials’ resignations to ensure no one is above the law.
A large number of former or incumbent government officials who were also working as independent directors in listed companies have quit their private employment, reports said.
Ba Shusong, deputy director of Financial Research Institute under the State Council Development Research Center, resigned as an independent director at China Minsheng Bank.
“Companies choose those directors for their social resources and background, which may provide the company with more loan opportunities and personal connections,” said Yin Zhichao, a professor with the Southwestern University of Finance and Economics.
Wang Yukai, a professor at the Chinese Academy of Governance, said retired officials could damage market competition and lead to corruption.
Sources: People’s Daily (人民日报), Global Times, China Daily
Hui Zhi is the Senior Manager for Content with the China Compliance Digest, where a version of this post first appeared.